The purpose of this research is to examine foreign competition in the domestic construction market of the United States (US). Foreign competition in US domestic construction is very much a part of the international trade problem confronting the country (Hoffman, 1987, p. 11). The general issue of American competitiveness has a specific application, with respect to foreign participation in US domestic construction ("To Keep," 1986, p. 22). Another important factor with respect to foreign participation in US domestic construction is the acquisition of American construction firms by foreign construction firms (Setzer & Kemezis, 1987, p. 4). Lastly, governmental approach towards industrial policy has a significant effect on the ability of foreign firms to compete in US domestic construction ("Government," 1987, pp. 21-22).
FOREIGN PARTICIPATION IN US DOMESTIC CONSTRUCTION
AS A PART OF THE COUNTRY'S TRADE PROBLEM
The domestic construction market in the US is a tempting target for giant foreign construction firms ("New York," 1987, p. 174). The major foreign participation involves firms from Canada, Western Europe, and Japan ("Can," 1986, p. 27). Relatively recently, however, new foreign players, such as the Peoples Republic of China (PRC), have begun to eye US domestic construction ("China," 1987, p. 92). Construction, thus, for the first time, is beginning to figure prominently in the American international trade deficit, and the survivability of the domestic industry is being questioned in some quarters (Hoffman, 1987, p. 28).
The balance of international trade for a country is "the difference between its exports and its imports" (Lederer, 1982, p. 55). In a narrow definition, exports and imports are considered to be only tangible goods. A broader definition, however, also cover all intangible services. This broader definition must be further expanded to include profits, remittances, pensions, ...